Bay Street Stocks Rally Behind Resource Sectors - Canadian Commentary

 @ibtimes
on July 15 2009 4:46 PM

RTTNews - Toronto stocks finished sharply higher Wednesday, led by resource stocks, and finished at a 12-day high. U.S. and European stocks also saw strength on the day.

The S&P/TSX Composite Index climbed 229.31 points or 2.29% to settle at 10,215.46. This marked the best finish since July 3.

Mining stocks soared 5.1% as copper added about 10 cents on the Comex. First Quantum (FM.TO) added 6.3%, Inmet (IMN.TO) rose 5.5% and Teck Resources (TCK.B.TO) added 5.4%.

Materials stocks added 3% and gold stocks rose 2.4%. August gold settled at $939.40 per ounce, up $16.60. Goldcorp (G.TO) added 4.1%, Agnico-Eagle Mines (AEM.TO) rose 3.5% and Eldorado (ELD.TO) jumped 2.1%.

Energy stocks surged 2.5% as light sweet crude jumped $2.02 and posted its best close in a week at $61.54 per barrel. Canadian Oil Sands (COS.UN.TO) rallied 5.7%, Suncor (SU.TO) gained 3.7% and Canadian Natural Resources (CNQ.TO) rose 3%.

On the corporate front, Corus Entertainment (CJR-B.TO) fell 2% after the company reported that its third-quarter net loss was C$145.0 million or C$1.81 per share, compared to net income of C$37.7 million or C$0.45 per share in the year ago quarter.

CVTech Group (CVT.TO) rallied 7.6% after it said it has signed a share purchase agreement for the acquisition of Riggs Distler & Company, effective retroactively to July 1. The deal is worth approximately C$43.0 million.

DragonWave (DWI.TO) surged 15.5% after the company reported a net loss for the first quarter of C$2.88 million or C$0.10 per share, compared to a net loss of C$1.94 million or C$0.07 per share in the year-ago quarter.

In economic news, Canadian manufacturing sales fell 6.0% to $38.4 billion in May, the lowest level since November 1998, according to data released Wednesday morning by Statistics Canada. Economists forecast a drop of 0.8%.

Meanwhile, the U.S. Labor Department revealed that consumer prices climbed 0.7 percent in June compared to the previous month. Economists had projected an advance of about 0.6 percent.

On earnings front tomorrow, Nexen (NXY.TO) is scheduled to report quarterly results. Analysts expect to the company to report earnings of US$0.31, compared to US$0.71 a year ago. Revenues are expected to have dropped 47.2%. Shares finished the session up 2.2%.

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